For a common resource,it is the case that A) MSC MC B) MSC MB D) MB MSB E) None of the above answers is correct.

Name: For a common resource,it is the case that A) MSC > MC B) MSC MB D) MB > MSB E) None of the above answers is correct.
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Question

For a common resource,it is the case that
A) MSC > MC
B) MSC < MC
C) MSB > MB
D) MB > MSB
E) None of the above answers is correct.

Quizplus · Accepted Answer

MSC (Marginal Social Cost) is greater than MC (Marginal Cost) for a common resource because it includes the external costs to society that are not accounted for by the private cost.

For a Common Resource,it Is the Case That